Summary
Truist Financial Corporation (TFC), formerly BB&T Corporation, announced on August 1, 2019, through a press release filed via an 8-K, its intention to redeem all outstanding shares of its 5.850% Series D Non-Cumulative Perpetual Preferred Stock and 5.625% Series E Non-Cumulative Perpetual Preferred Stock. This action involves both the preferred stock and their corresponding depositary shares. This redemption, set for the dividend payment date of September 1, 2019 (with payment on September 3, 2019, due to the date not being a business day), will occur at a price of $25 per depositary share. This event signals a significant capital management decision by the company, impacting preferred stockholders by ending dividend accrual and returning capital. Investors should note that regular dividends will be paid to shareholders of record as of August 14, 2019, prior to the cessation of accrual.
Key Highlights
- 1TFC (formerly BB&T) is redeeming all outstanding Series D and Series E Non-Cumulative Perpetual Preferred Stock and their associated depositary shares.
- 2The redemption price is $25 per depositary share.
- 3A total of 23 million Series D Depositary Shares and 46 million Series E Depositary Shares are being redeemed.
- 4The redemption is scheduled for September 1, 2019, with payments processed on September 3, 2019, as it is the next business day.
- 5Regular dividends will be paid to holders of record as of August 14, 2019.
- 6Dividend accrual for these preferred stock series will cease on and after the redemption date.
- 7The filing is an 8-K report, indicating a material event for the company.